Data Is Power - But Only When You Earn It.

Mar 55 min read

Why Retailers Must Earn Customer Data and Use It Wisely

The pace of change in retail is unlike anything we’ve seen before, especially when it comes to data and technology. Digital transformation continues to be in overdrive, and the customer expectation is that brands really understand them on a personal level. In this current retail landscape, data is as valuable as money. Yet, there’s a crucial detail many retailers overlook, customer data isn’t something you simply take or collect; it’s something you must earn.

People are very aware, more than ever, of the value of their personal information. They won’t just hand it over just because a brand asks and many, myself included, have those false email addresses we use with those brands that just expect it. Instead, we need to believe that sharing our data will genuinely enhance the experience. The businesses that understand this shift, and act on it, will be the ones that win in the long run.

The New Reality: Trust Before Data

Gone are the days when customers blindly handed over their emails or phone numbers without a second thought. Now, they’re far more cautious and trust less than ever before. They want to know: Why do you need this? How will it be used? What do I get in return? With increasing concerns over privacy, and strict regulations like GDPR and CCPA, brands have to rethink their approach.

Instead of treating data collection as a one-sided transaction, retailers need to focus on value exchange. Customers will willingly share their information if they believe they’re getting something worthwhile in return. That could mean more personalised experiences, exclusive perks, or simply a more seamless shopping journey. The key is ensuring that data collection feels less like a demand and more like a natural part of an ongoing relationship.

Nike Run Club: Earning Data the Right Way

Nike is one of the rare brands that truly understands how to earn data rather than just collect it. Instead of bombarding customers with requests for information at checkout, they created something far more valuable - the Nike Run Club app.

This wasn't just another fitness tracker. It’s a tool that provides real, tangible benefits: personalised training plans, real-time coaching, and performance tracking. Every mile logged wasn't just data for Nike, it was seen as an opportunity for users to improve their performance, be the best they could be and feel super connected to their fitness journey.

At the same time, Nike gains incredibly rich insights. They don’t just know what products their customers buy; they understand how often they run, what motivates them, and even when they’re most engaged. This data helps them refine and improve their products, enhance customer experiences, and strengthen their direct-to-consumer strategy, all while making runners feel like they’re part of something much bigger.

So what's the lesson here? Nike doesn’t ask for data. They create an experience so compelling that customers want so badly and as a result share it.

Retail’s Biggest Mistake: Relying Too Heavily on Data Alone

One of the most common pitfalls I often see in data-driven retail is the assumption that numbers tell the whole story. Data is powerful, no doubt. It identifies patterns, tracks trends, and provides measurable insights. But here’s the problem, data, by its very nature, is convergent. It consolidates information into neat, digestible takeaways.

Humans, on the other hand, think divergently. We connect seemingly unrelated ideas, challenge assumptions, and see opportunities beyond what the numbers show. The best retailers are the ones who use data as a foundation but let creativity and intuition drive decision-making.

For example, a brand might see that a particular sneaker style is selling well. The data says, “This product is in demand.” But why? Is it because of an influencer endorsement? A cultural trend? A shift in customer sentiment? Numbers can show correlation, but human insight is needed to understand causation. And that’s where real innovation happens.

Segmenting Customers Like Real People, Not Data Points

Customer segmentation is often far too simplistic. Many brands divide audiences by basic demographics, age, location, income. But in real life, relationships simply don’t work that way.

Think about your friendships. Some people are casual acquaintances, others are close confidants, and some serve specific roles in your life. We don’t categorise friends based on their ZIP code, we connect with them based on shared experiences, emotions, and values.

Retailers should apply the same thinking to customer segmentation. Instead of just asking who the customer is, they should also thinking about:

Why do they buy? (Are they motivated by convenience, emotion, or a specific need or want?)
How do they engage? (Do they respond to discounts, social proof, exclusivity?)
What do they value? (Sustainability, innovation, affordability, status?)

By treating segmentation as a dynamic, humanised process, rather than just a data exercise, brands can create messages and experiences that truly resonate and hit the spot emotionally. Just remember we make all decisions with emotion and justify it with logic later.

Applying This Thinking to Your Retail Strategy

So how can retailers strike the right balance between data-driven insights and human connection? Let me show you:

1. Give Customers a Reason to Share Their Data

Provide clear, value-driven incentives like exclusive value driven content, personalised recommendations, or customer right loyalty perks.
Be transparent, let customers know why their data is being collected and how it benefits them.

2. Use Data as a Guide, Not a Crutch

Leverage data to inform decisions, but don’t let it dictate everything.
Supplement analytics with qualitative insights. This means using customer interviews, social listening, and cultural analysis.

3. Segment Customers Like People, Not Statistics

Move beyond basic demographics and incorporate psychological and behavioural factors.
Tailor messaging and experiences based on their emotions, values, and engagement styles.

4. Make Data Work for the Customer, Not Just for You

Use customer insights to enhance their experience, not just to fuel more targeted ads.
Make sure that personalisation feels seamless and natural, customers should feel understood, not tracked.

The Future of Retail: Data with Purpose

Retailers that continue treating data collection as a one-way transaction are really going to struggle to keep up. The brands that win will be those that earn customer trust by providing some genuine value. They’ll recognise that while data is powerful, it’s not and never will be a substitute for human intuition.

So, as you refine your approach to customer data, ask yourself this simple question: Are we just collecting information, or are we truly earning it? Because in the future of retail, only one of those approaches will lead to lasting success.

Nick Gray